I am applying for student loan and I have bad credit

WhitePillow · Oct 2, 2008

For the lines of credit through the fed you both are correct the interest rate is not credit based.
As we've learned recently Sallie Mae and her sister Fannie Mae are not Federal entities and therfore your credit rating comes into play. The Tuition Answer loan is the only deferred "private" loan that I could find, there may be others but I couldn't find one. It seems designed for those of us who are non-traditional students (with families, house payments / rent, etc). The interest accrues during the deferment period and isn't at the most attractive rate (even w/good credit), is subject to adjustment (meaning the rate could go up if the fed raises rates), but I'm hedging my bet that the Fed keeps rates low for the near future then I plan is to roll the debt into a HELOC / mortage based loan immediately following graduation and employment (it will then be more tax deductible) with a lower intrest rate during the pay off.
Jimmy- If you were earning a good wage while working you may find yourself behind the eight ball for this academic year, as this year's aid is based off of your FAFSA and your 2007 Tax return (the one you filed in April 2008), with no exeptions for "life changes" that I could find. The good news is in academic year 2008-09 you should qualify for substantially more.

This isn't correct. Sallie Mae is NOT Fannie Mae's sister. Sallie Mae is government run. You are dealing with two entirely difference subjects. I am in the mortgage industry (which, yes, is going to H*(( in a handbasket). Fannie Mae and Freddie Mac deal with mortgages. I'm sure this is where the confusion is coming in. The HOUSING industry is what is going wrong, not the student loan industry. Although private loans will continue to tighten their credit ratings, you should be fine with Sallie Mae.

The person does not want you to tell them what they are doing with the money because student loans are not to pay off credit card debt. They are for you to pay your student loans, school items and a small portion of your housing with. The lady who told you not to tell her that did you a favor...we have to report what is told to us which may lead you to an automatic denial. Good luck.

jimbojonesey · Oct 10, 2008

Well it turns out that i only qualify for 5000. I still need about 3000 more dollars to become financially stable throughout my long term duration while in school.

I guess I will have to look into private loans.. Are there any subsidized private loans available out there? I'm looking to about 2 more years in school and I really don't want to be adding more debt while in school due to accumulating interest rate from an unsubsidized student loan. How probable is it for me to get a substantial amount of scholarship money and what are the GPA eligibility for it?

Kevin RN08 · Oct 11, 2008

Sallie Mae is government backed but they have a "private" side as well. There is the government backed loans and the "private" loans to choose from (fafsa dependant).

Whitepillow:

Saying that "housing industry is what is going wrong" is, false- not a stretch of the truth- IT IS FALSE, period. It is personal and business credit that is going wrong, bank to bank, car buyer to car dealer, home buyer to mortage company, card holder to credit card company. This mess is affecting almost everyone indirectly.

Jimbo:

I'd check with Citi, SallieMae, and others ... and follow flmom's advice, ENOUGH WITH THE CREDIT!